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Tax Updates and Impact on Charitable Giving

 

The Office of University Advancement has compiled a brief summary of some tax provisions which will apply for tax years 2020 and 2021. For additional information about these provisions or about making a gift in your estate, please call our Director of Gift and Estate Planning, Tim McKinley, at 610-519-3587 or email him at timothy.mckinley@villanova.edu.

Information listed herein is not intended to be legal, accounting or professional advice. Villanova strongly encourages its donors to engage the services of appropriate professional advisors when planning a charitable gift and for all tax and other financial implications.
 

Tax Reform Summary 
 

For tax years 2020 and 2021, even taxpayers who do not itemize can claim up to $300 in above-the-line charitable deductions, and married couples who file jointly can claim up to $600.

Beginning in tax year 2021, the exemption for Federal Estate taxes will be $11.7 million for an individual and $23.4 million for married couples. This exemption is now set to return to pre-2018 amounts in 2026, when the exemption will become $5.4 million for an individual and $10.8 for married couples.

The Consolidated Appropriations Act of 2021 has increased the adjusted gross income (AGI) limit on charitable gifts of cash to public charities such as Villanova University to 100% of a donor’s AGI. Contributions to Donor Advised Funds are not eligible for this deduction.

Any unused cash contribution deduction may be carried forward for up to five years. Your gifts of appreciated assets such as securities and real estate will operate to reduce your ability to contribute 100% of AGI.

Updated: April 2021

Matching Gifts

Many employers sponsor matching gift programs and will match any charitable contributions made by their employees.

If your company is eligible, request a matching gift form from your employer, and send it completed and signed with your gift. We will do the rest. The impact of your gift to our school may be doubled or possibly tripled! Some companies match gifts made by retirees and/or spouses.